Financial Performance - Net income attributable to SLM Corporation common stock for the three months ended September 30, 2024, was $(49,800) thousand, compared to $24,723 thousand for the same period in 2023[175]. - Diluted earnings per common share for the nine months ended September 30, 2024, was $2.18, up from $1.69 for the same period in 2023[175]. - For the three months ended September 30, 2024, the net loss attributable to common stock was $50 million, or $0.23 loss per common share, compared to a net income of $25 million, or $0.11 diluted earnings per common share for the same period in 2023[185]. - For the nine months ended September 30, 2024, net income attributable to common stock was $483 million, or $2.18 diluted earnings per common share, compared to $400 million, or $1.69 diluted earnings per common share for the same period in 2023[187]. Loan Portfolio and Originations - Total education loans, net, at the end of September 30, 2024, was $20,459,933 thousand, a decrease from $20,899,181 thousand at the end of September 30, 2023[175]. - The company originated $2,779,631 in loans during the three months ended September 30, 2024[199]. - Private Education Loan originations for the three months ended September 30, 2024, reached $2,758,529 thousand, up from $2,451,413 thousand in the same period of 2023, indicating an increase of approximately 12.5%[207]. - Total Private Education Loan originations for the nine months ended September 30, 2024, were $6,031,515 thousand, compared to $5,544,017 thousand in the same period of 2023, marking an increase of approximately 8.8%[208]. Credit Losses and Provisions - Provision for credit losses increased to $271 million in the current quarter from $198 million in the year-ago quarter, driven by new loan commitments[185]. - The provision for credit losses for the three months ended September 30, 2024, was $109,196 thousand, compared to $44,423 thousand in the same period of 2023, reflecting a significant increase of approximately 145%[210]. - Total provisions for credit losses reported in consolidated statements of operations for the nine months ended September 30, 2024, were $300,336 thousand, down from $329,864 thousand in 2023, a decrease of 9.0%[216]. - Provisions for loan losses in the current period for the nine months ended September 30, 2024, were $40,579 thousand, down from $60,328 thousand in 2023, a decrease of 32.8%[216]. Interest Income and Margin - Net interest income decreased by $26 million in the current quarter, primarily due to a 43-basis point decrease in net interest margin and a $238 million decrease in average Private Education Loans and FFELP Loans outstanding[185]. - Net interest margin for the three months ended September 30, 2024, is 5.00% compared to 5.43% for the same period in 2023[190]. - Interest income for the three months ended September 30, 2024, decreased by $25,225, with a change in rate contributing $(31,183) and volume contributing $5,958[192]. Operating Expenses - Total operating expenses for the third quarter of 2024 were $171 million, compared to $167 million in the year-ago quarter, primarily due to higher marketing and personnel costs[185]. - Total operating expenses for the first nine months of 2024 were $488 million, up from $476 million in the year-ago period, driven by higher personnel and marketing costs[187]. Securitization and Share Repurchase - The company executed a $668 million securitization transaction on May 15, 2024, raising approximately $668 million of gross proceeds[179]. - The company executed a $868 million securitization transaction on August 14, 2024, raising approximately $868 million of gross proceeds[180]. - The company repurchased 9.6 million shares of common stock at a total cost of $204 million during the nine months ended September 30, 2024[180]. Liquidity and Capital Management - The company holds a Secured Borrowing Facility with a borrowing capacity of $2 billion, with an extended revolving period until June 13, 2025[180]. - Unrestricted cash and liquid investments totaled $5.921 billion as of September 30, 2024, a decrease from $6.138 billion at December 31, 2023[238]. - The company targets maintaining sufficient on-balance sheet liquidity to meet all contractual obligations under various stress scenarios[237]. Regulatory and Risk Management - The bank's risk-based capital ratios exceeded the required minimums under U.S. Basel III as of September 30, 2024, with a Common Equity Tier 1 risk-based capital ratio above 7.0%[252]. - The bank's regulatory capital ratios exceeded all applicable standards to qualify as "well capitalized" under the prompt corrective action framework[255]. - The company uses interest rate swaps and derivatives to manage interest rate risk, aiming to match assets with debt that have the same underlying index[283]. Economic and Market Conditions - The Economic Value of Equity (EVE) sensitivity analysis shows a potential decrease of 21.3% under a +300 basis points shock scenario as of September 30, 2024[276]. - The funding gap for the SOFR rate category is $1,103.9 million, indicating a mismatch in funding and assets[281].

[Sallie Mae Third-Quarter 2024 Results Overview](index=1&type=section&id=Sallie%20Mae%20Reports%20Third-Quarter%202024%20Financial%20Results) [Third-Quarter 2024 Performance Summary](index=1&type=section&id=Third-Quarter%202024%20Performance%20Summary) Sallie Mae reported a GAAP net loss of $0.23 per common share for Q3 2024, a significant decrease from the $0.11 earnings per share in Q3 2023, despite achieving 13% year-over-year growth in Private Education Loan Originations and a substantial $271 million provision for credit losses Q3 2024 Key Performance Indicators | Metric | Q3 2024 Value | Note | | :--- | :--- | :--- | | GAAP Net Loss Per Common Share | $(0.23) | Compared to $0.11 EPS in Q3 2023 | | Private Education Loan Originations | $5.3 million | 13% growth from year-ago quarter | | Total Net Charge-Offs | $77 million | 2.09% of Average Loan Portfolio in Repayment (annualized) | | Provision for Credit Losses | $271 million | Increased from $198 million in Q3 2023 | | Non-Interest Expenses | $172 million | - | - CEO Jonathan Witter highlighted a successful peak season, outperforming origination growth estimates, and expressed satisfaction with trends in credit quality and charge-offs[4](index=4&type=chunk) [Capital Allocation and Shareholder Returns](index=1&type=section&id=Capital%20Allocation%20and%20Shareholder%20Returns) Sallie Mae demonstrated a continued commitment to shareholder returns by increasing its fourth-quarter common stock dividend to $0.13 per share, actively repurchasing shares, and maintaining significant capacity under its 2024 Share Repurchase Program - The fourth-quarter dividend on common stock was increased from $0.11 to **$0.13 per share**, payable on December 16, 2024[1](index=1&type=chunk) - A fourth-quarter dividend on Preferred Stock Series B of **$1.7448719 per share** was also announced[1](index=1&type=chunk) - In Q3 2024, the company repurchased **5.3 million shares** of common stock[4](index=4&type=chunk) - As of September 30, 2024, **$448 million** of capacity remained under the 2024 Share Repurchase Program[4](index=4&type=chunk)[7](index=7&type=chunk) [Private Education Loan Portfolio Trends](index=1&type=section&id=Private%20Education%20Loan%20Portfolio%20Trends) The private education loan portfolio showed signs of improving credit quality in Q3 2024 compared to the prior year, with key metrics such as loans in hardship forbearance, delinquencies as a percentage of loans in repayment, and net charge-offs all decreasing year-over-year Loan Portfolio Credit Quality Trends | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Average Loans Outstanding, net | $20.5 billion | Down 1% from Q3 2023 | | Loans in Hardship Forbearance | 1.01% | 1.17% | | Delinquencies (% of loans in repayment) | 3.60% | 3.65% | | Net Charge-Offs (% of avg. loans in repayment) | 2.08% | 2.53% | [Full Year 2024 Guidance](index=1&type=section&id=2024%20Guidance) Sallie Mae provided its updated guidance for the full year 2024, projecting diluted earnings per share to be in the range of $2.70 to $2.80 and expecting continued strong growth in private education loan originations Full Year 2024 Company Expectations | Metric | Guidance Range | | :--- | :--- | | Diluted Earnings Per Common Share | $2.70 - $2.80 | | Private Education Loan Originations (YoY Growth) | 8% - 9% | | Total Loan Portfolio Net Charge-Offs | $325 million - $340 million | | Non-Interest Expenses | $635 million - $655 million | [Financial Statements](index=3&type=section&id=Financial%20Statements) [Statement of Operations](index=3&type=section&id=Statement%20of%20Operations) In Q3 2024, Sallie Mae reported a net loss of $50 million, a significant reversal from the $25 million net income in Q3 2023, primarily driven by a 37% year-over-year increase in the provision for credit losses, which rose to $271 million, while net interest income saw a slight decline to $359 million from $385 million in the prior-year quarter Q3 Statement of Operations Highlights ($ millions) | Line Item | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $359 | $385 | (6.8%) | | Provision for Credit Losses | $271 | $198 | +36.9% | | Total Non-Interest Income | $24 | $24 | 0% | | Total Non-Interest Expenses | $172 | $170 | +1.2% | | Net Income (Loss) Attributable to Common Stock | $(50) | $25 | N/A | [Balance Sheet](index=3&type=section&id=Balance%20Sheet) As of September 30, 2024, Sallie Mae's total assets increased to $30.0 billion from $29.2 billion at the end of 2023, with growth primarily fueled by an increase in long-term borrowings, and total equity also grew to $2.13 billion from $1.88 billion over the same period Balance Sheet Highlights ($ thousands) | Line Item | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $30,012,767 | $29,169,468 | | Loans held for investment, net | $20,459,933 | $20,306,357 | | Deposits | $21,445,457 | $21,653,188 | | Long-term borrowings | $6,036,527 | $5,227,512 | | Total Equity | $2,133,750 | $1,880,797 | [Key Performance Metrics](index=3&type=section&id=Key%20Performance%20Metrics) Key profitability and performance metrics for Q3 2024 showed a significant decline compared to the same period last year, with Net Interest Margin compressing by 43 basis points to 5.00%, and both Return on Assets (ROA) and Return on Common Equity (ROCE) turning negative, reflecting the quarter's net loss Q3 Key Performance Metrics Comparison | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Interest Margin | 5.00% | 5.43% | | Return on Assets (ROA) | (0.6)% | 0.4% | | Return on Common Equity (ROCE) | (10.2)% | 6.3% | | GAAP Diluted EPS | $(0.23) | $0.11 | [Forward-Looking Statements](index=5&type=section&id=CAUTIONARY%20NOTE%20AND%20DISCLAIMER%20REGARDING%20FORWARD%20LOOKING%20STATEMENTS) [Disclaimer](index=5&type=section&id=Disclaimer) This section contains standard cautionary language regarding forward-looking statements, including the 2024 guidance, outlining various risks and uncertainties that could cause actual results to differ materially from management's current expectations, and stating that the company does not undertake any obligation to update these statements - The press release contains forward-looking statements based on management's current expectations, including the 2024 guidance, loan sales, and share repurchases[9](index=9&type=chunk) - Actual results may differ materially due to various risks and uncertainties, including financing costs, liquidity limits, regulatory changes, credit risk, and general economic conditions[10](index=10&type=chunk) - The company does not commit to updating or revising any forward-looking statements to reflect actual results or subsequent events[11](index=11&type=chunk)

Sallie Mae’s (SLM) growth in average loan balance has been supporting NII. Strategic inorganic growth moves will expand its operations and diversify revenue streams. Lower liquidity and rising expenses are a concern.Shares of Sallie Mae have increased 54.8% compared with the industry growth of 43.9% in the past year. Its 2024 earnings estimate has revised upward in the past 60 days.Image Source: Zacks Investment ResearchFactors Driving Salie Mae StockThe company is a dominant player in every phase of the st ...

The Zacks Consumer Loans industry continues to witness weakening asset quality. The companies are also bearing the brunt of inflation, higher rates and expectations of economic slowdown. Though the Federal Reserve plans to cut rates as soon as September, consumers understand that high interest rates are here to stay for some time, and demand for the loans is likely to witness modest improvement. Easing lending standards, stabilizing consumer sentiments and digitization of operations will aid consumer loan p ...

cogalWhat a difference a year makes. When I first wrote about the preferred share listing for education loan provider SLM Corporation (NASDAQ:SLMBP) in August last year, its price returns were positive even as the stock’s main listing (NASDAQ:SLM) was dropping. While SLMBP’s returns over the past year are still healthy, the main listing has done even better (see chart below). Price Returns, SLMBP and SLM (Source: Seeking Alpha)There’s a very good reason for this. SLMBP’s unique selling point is its div ...

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q2 2024 was $1.11, slightly up from $1.10 in Q2 2023 [7] - Loan originations increased by 6% year-over-year to $691 million [8] - Net interest income was $372 million, with a net interest margin of 5.36% [11] - Total provision for credit losses was $17 million, influenced by a $103 million release related to a loan sale [11] - Private education loan reserve improved to $1.3 billion, or 6.1% of total student loan exposure, down from 6.5% a year ago [12] Business Line Data and Key Metrics Changes - Net private education loan charge-offs were $80 million, representing 2.19% of average private education loans in repayment, down 50 basis points from Q2 2023 [9] - Delinquencies for loans 30 days or more decreased to 3.3% from 3.7% a year ago [12] - Approximately 84% of borrowers in loss mitigation programs were making loan payments, up from 64% pre-COVID [13] Market Data and Key Metrics Changes - FAFSA completion rates for high school seniors were down approximately 11% year-over-year, impacting application volumes [15] - The company expects a small decline in application volume due to FAFSA delays but remains confident in meeting volume expectations [16] Company Strategy and Development Direction - The company is focused on enhancing its core business and improving customer service [7] - Plans to continue share repurchase strategy, having repurchased 2.9 million shares at an average price of $21.17 [10] - The company is optimistic about future performance due to improved credit trends and effective loss mitigation programs [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate FAFSA-related challenges and expects schools to catch up in processing financial aid applications [15] - The company updated its full-year 2024 GAAP diluted EPS guidance to a range of $2.70 to $2.80 per share [18] - Management noted that the competitive environment remains strong but manageable, with expectations of gaining market share from a competitor exiting the market [22][28] Other Important Information - The company reported a solid liquidity position, with liquidity at 24.4% of total assets [14] - Noninterest expenses were $159 million, a slight increase from the previous year [14] Q&A Session Summary Question: Outlook on FAFSA fixes and college enrollments - Management is gaining confidence in FAFSA completion rates and expects schools to catch up, potentially minimizing enrollment losses [21] Question: Credit program optimization - The company is working on tightening eligibility for loss mitigation programs to better match customer needs [24] Question: Competitor exit impact - The company has incorporated expected share gains from a competitor exiting the market into its originations plan [28] Question: Loan sale gains - The company anticipates favorable loan sale conditions but notes differences in credit quality compared to competitors [30] Question: Charge-off rate expectations - Long-term goals for net charge-off rates remain in the high ones to low 2% range, with current guidance reflecting better-than-expected performance [33] Question: Seasonal trends in delinquency rates - Management acknowledged potential new seasonality in delinquency trends due to the interaction of loan modifications and repayment waves [43]

Sallie Mae (SLM) reported $372.17 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.7%. EPS of $1.11 for the same period compares to $1.10 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $368.97 million, representing a surprise of +0.87%. The company delivered an EPS surprise of +40.51%, with the consensus EPS estimate being $0.79.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Financial Performance - GAAP net income attributable to common stock was $247 million in Q2 2024[5] - Q2 2024 GAAP diluted earnings per common share was $111[5] - Net interest margin for Q2 2024 was 536%, down from 552% in Q2 2023[5] - Return on Common Equity was 51% for the quarter ended June 30, 2024[4] - Gain on sale of loans in Q2 2024, coupled with related allowance release, resulted in $072 of diluted earnings per common share[6] Loan Origination and Sales - Private education loan originations in Q2 2024 were $691 million, a 6% increase year-over-year compared to $651 million in the year-ago quarter[4] - The company executed $16 billion in private education loan sales in Q2 2024[4, 8] Balance Sheet and Capital Allocation - A common stock dividend of $011 was paid in Q2 2024[3] - 29 million shares were repurchased in Q2 2024 at an average price of $2117 per share[5] - $562 million of capacity was left under the repurchase program authorization as of June 30, 2024[5] - Total risk-based capital ratio was 147%, with a CET1 capital ratio of 134%[4] Credit Performance - Private Education Loan net charge-offs for Q2 2024 were $80 million, representing 22% of average loans in repayment (annualized), compared with 27% in Q2 2023[15]

Sallie Mae (SLM) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $1.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40.51%. A quarter ago, it was expected that this student loan company would post earnings of $1.09 per share when it actually produced earnings of $1.27, delivering a surprise of 16.51%.Over the last four quarters, the c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-13251 SLM Corporation (Exact name of registrant as specified in its charter) | | | 52- | | --- | --- | --- | | Delaware | | 2013 ...